Russia Faces Labor Shortage of 11 Million Workers by 2030

Russia is facing a severe labor shortage that threatens its economy through 2030, with an estimated need to integrate nearly 11 million workers to replace retirees and fill 800,000 new jobs. This crisis is driven by a shrinking working-age population due to historically low birth rates, increased deaths, and the impact of the war in Ukraine, which has caused significant casualties among working-age men and prompted an exodus of educated professionals. President Vladimir Putin has made population growth a national priority, advocating for higher birth rates through financial incentives such as cash payouts and tax breaks for large families, while encouraging women to have more children. Despite these measures, births fell to their lowest level since 1999, and deaths rose, leading to a demographic decline that could halve Russia's population by 2100. The labor shortage has forced companies to hire retirees and teenagers, driving wage increases and inflation, which exacerbate economic challenges amid ongoing wartime spending and a looming recession. The government is also seeking foreign workers to alleviate shortages, especially from countries like India, but no comprehensive solution has yet been found.